Interest in Negotiating
In a discussion with IOWIUA offi-
ceis Sept 28, management represen-
tatives B. C Clarkson and J E.
Hughey strongly emphasized that the
company shares the union's interest
in an early stait of negotiaung a
new collective working agreement.
The meeting giew out of an ex-
change of letters last week. The
IOWUA advised the company Sept.
23 that it was giving notice of its
wish to terminate the Collective
Working Agreement Dec. 2, and at
the same time proposed that a start
be made on negotiation of a; new
CWA.
The company replied Sept. 25 Its
letter pointed out that since it has
not been legally established that the
Board elected Aug. 26 has full legal
authority to enter into agreements
with the company, it follows that this
Board may not have the authority to
terminate the existing agreement
When the Board's validity has been
established by whatever means, how-
ever, the company will recognize the
fact that the present CWA will be
terminated Dec 2
A feature of the meeting Sept 28
with President F L. Maduro, General
Secretary C Yarzagaray and Treas-
urer P. G. Book was discussion of
various means by which the com-
pany hoped to assist the Board in
clarifying its status and speeding lup
the start of negotiations Later in-
vestigation proved, however, that
there is no substitute possible for the
court action on which a decision is
expected Oct 7.
Meanwhile the company looks for-
ward to as early a start as possible
on negotiations for a new CWA Lago
recognizes the IOWUA as the sole
bargaining agent. It also recognizes
that a large number of members
voted in the election that brought the
present Board into office These
facts do not alter the legal question
of the Board's status, however, and
the company continues to believe that
it cannot actually sign a new CWA
until it has been determined whether
the Board is legally entitled to sign
for the IOWUA.
In an offer to help resolve this si-
tuation, management members told
the union officers in a second meet-
ing Oct. 1 that, if the court decision
Oct. 7 favors the IOWUA Board, ne-
gotiations can begin immediately even
if there is an appeal Bai gaining
could then proceed in the hope that
the legal question would be resolved
in time to sign a CWA by Dec. 2

B. C. Clarkson Accepts

Assignment in Argentina;

Will Leave Mid-October
Assistant General Manager Burton
C. Clarkson will leave Lago about
mid-October preparatory to accepting
an assignment in Buenos Aires with
Esso, Sociedad An6nima Petrolera
Aigentina, effective Nov. 1 Mr.
Clarkson has been a Lago director
since his ai rival April 1, 1962.
An employee of the Standard Oil
Company (New Jersey) for thirteen
years, Mr. Clarkson was transferred
to Lago from the Baltimore (Mary-
land) Refinery, where he had been
general manager. Prior to that he had
been assigned to the Bayway (New
Jersey) Refinery as assistant head of
the chemical products department and
head of the ethylene operation.
Mr. Clarkson's Jersey Standard
career began in 1950 as a student en-
gineer with Esso Research.
Mr. Clarkson was elected to Lago s
Board of Directors to replace M. E.
Fisk, present general manager of An-
tilles Chemical Company.

Crafts Will Move to Central Location
Craftsmen, offices and equipment are being moved in a project iden-
tified as Mechanical Shops consolidation. Involved are the Carpenter,
Instrument and Electrical Shops and Zone 3, Machine and Metal Trades
offices. Some moves have been made; others are still in the prepara-

tory stages. When all moves are
crafts will be centrally located
The Instrument and Electrical
Crafts, forming a major pai t of the
move, will vacate their present, de-
tached buildings These buildings, lo-
cated east of the LEAR alea, :re old
and eventually will be removed. The
two crafts will move into the car-
pentel area of the Main Shops. The
lower level of the Caipenter Shop, or
that aiea adjacent to the Machine
Shop, will be used by the Electrical
Craft. The uppei area of the Car-
penter Shop, or the loft aea, will
house the Instrument Craft. The
moves of the two crafts are planned
foi the end of December ni the be-
ginning of Janualy.
To make room fol the Instrument
and Electrical Crafts, the Carpenter
Shop, in its entirety, will be moved
to the west end of the Storehouse The
new location is the large wile-en-
closed area formerly used fo hbulk
storage, which is next dool to the
Paint Shop The large sawdust col-
lection and receptacle system has
been removed from the present Car-
penter Shop and set up at the new
location in one of the first big equip-

completed in February, 1964, the

ment moves
The moves will increase efficiency
and better the coordination of pro-
jects It is logical that the Carpenter
Shop be positioned alongside the
Paint Shop To have the Electrical
and Instrument Crafts in the same
building with the Machine and Metal
Trades Crafts will afford immediate
liaison between crafts and crattsmen.
The present Machine Shop office
will soon become the central tool
room for all the crafts in the Main
Shops. The present system allowed
each craft to have its own tool bin
The proposed central tool room will
seive all crafts The assistant zone
supervisors located in the Machine
Shop, Zone 3 and craft offices will
have offices in the main Storehouse
office. In fact, the Zone 3 offices
have been moved. The old Zone 3
building the green, block building
which protrudes from the south side
of the Main Shops -will be removed
Craft trainers, who now have their
offices on the second floor of the
Instrument Shop, will move to the
present Metal Trades offices.

Aimed At Product Improvement

Transfer Line Reactor and Three Towers

Will Be Added to PCAR and LEAR Complex
The Cat Plant, LEAR and Low Octane Plant are currently the sub-
jects of a project that will enable Lago to convert two million barrels
of naphtha a year into heating oil, alkylate and fuel oil. The project,
which will cost approximately four and one-half million guilders, is
being undertaken as one of the continuous series of steps to upgrade
Lago's products.
The project will include the addi- will be replaced by the production of
tion of a reactor to the Cat Plant, more marketable materials through
revamping existing PCAR internal further processing to raise product
equipment, and revamping present quality.
towers and adding new ones to the The reactor will be what is called a
LEAR network. When the project is transfer line reactor. It is a vessel of
completed late in 1964, all thermal moderate proportions, approximately
pressure distillate will be processed at twelve feet long with a fourteen-foot
PCAR and LEAR thereby eliminating diameter, and will be added to exist-
the need for the Low Octane Plant. ing PCAR facilities. Its installation
Economic factors influencing the will permit segregated cracking.
change are forecasts that Lago's mar- Thermal naphthas will be directed
ket for motor gasoline may decline into the PCAR reactor while gas oil
even beyond present low levels. Indi- will be fed into the transfer line re-
cations are that sales outlet for low- actor and then into the PCAR reac-
quality thermal naphtha will be parti- tor. This affords maximum efficiency
cularly difficult to obtain. Thermal of operation by imposing optimum
naphthas produced are low quality cracking severities on each stock.
materials, which are becoming in- Added to the LEAR network will be
creasingly difficult to sell. three towers. Actually, these towers,
Lago has embarked on the project in effect, will replace those of the
of revamping its PCAR and LEAR Low Octane Plant. The site of the
equipment in order to increase pro- proposed towers, all of medium
ductin of materials most sought by height, has not been decided, but it
the international market while reduc- will be adjacent to the LEAR :nstal-
ing costly manufacture of hard to lation. One of the project's consider-
sell, low quality products. The pro- actions is consolidation of cracking
ject will better Lago's position com- operations, as is indicated by the pro-
petitively. The manufacture of low ject's identification CCNP, consoli-
quality products not in great demand nation of cracked naphtha processing.

Christmas Tree Orders
Will Close Oct. 31
Christmas tree orders from enm-
ployees will be accepted from Oct
1 to Oct. 31. As Christmas tiees
are not considered normal com-
missary stock, payment tuo trees
will be handled as an independent
payroll deduction
Employees desiring to place an
order may do so by signing a pay-
roll deduction foirm which will be
available at the Lago Commissary
though Oct. 31. By signing the
form, the employee agrees to ac-
cept a Christmas tree at the pre-
vatling price

J. D. Geerman A. L. H. Hopman
over twenty-six years when he leaves
Lago Jan 1, 1964 on Optional Early
Retirement. He was employed by Es-
so Transportation, Stewards and
Electrical Craft before joining the
Process Department as a process hel-
per C in May, 1937. He was promoted
through the fireman, houseman and
levelman categories before becoming
assistant operator, his present posi-
tion, in June, 1950.
The original employ of Mi Pole
was in the Pipe Craft. His service.
however, is almost entirely in the
Acid and Edeleanu Plant. He i ceived
five promotions during his nearly
twenty-two years of service, and re-
tired Oct. 1 as a controlman.
Mr. Hopman began his Lago career
in the Diy Dock as a laborer in De-
cember, 1938. He was promoted seven
times and became a Dry Dock mech-
anical A in August, 1946 In Decem-
ber, 1954, he was transferred to the
Pipe Craft as a pipefitter B. The fol-
lowing year, he was promoted to pipe-
fitter A, the position he held when
he left Lago Oct. 1.
Mr. Richardson retired Oct. 1. The
majority of his Lago employ was with
the Stewards, and during his Lago
tenure he received four promotions
His last assignment was janitor in
Mechanical-Yard
Nearly seventeen yeams of employ

Complete Lago Careers
Six men from the Mechanical and
Process Departments are completing
their Lago carecis Reaching lettic-
nient aie John C Walker. Thoma!,
H. Johnson and George E L Pole
of the P;uce:;, Department and Jose
D. (G;ei inin James N. Richardson
and Alexander L H. Hopman of the
Mechanical Department
The Pitocass men are all twenty-
year men Mr Walker will leave a-
bout N w 1 after completing twenty-
one years of service, all at Lago He
sta ted in January, 1943, as an ap-
prentice operator in the Pleessire
Stills That same year he became as-
sistant operator, and in August, 1947,
he was promoted to opli no r. In
September, 1955, Mr Walket was
promoted to assistant shift foreman
in Catalytic and Light Ends He was
promoted to shift foreman in March
of this year
Mr Johnson will have completed

Applications for Teagle ess on sermina, w tl eat econumc
svstnis and ,liders as basic essen-
Scholarship Consideration as and will ,deal with spetfi s
Mu B In ty D 17 s as they apply to 'contlites
MUSt Be In by Dec. 17 Contempoialy capitalism n the
Applications foi Teagle Scholaiship, United States is one tupic The pine
consideration must be sllubtil ted by economics of a planned economy 1.
Tuesday, Dec 17, it wiai ai nnouned another and is followed by the ex-
this week by L D Dittle of Lago's pel len e of planned ecoonony in the
Traminng Division Applications should Union of Soviet Socialist Republh s
be sent to Mi Dittle at the Adnln- i Ma ket socialism in Poland and Yu-
istration Building g.islavia will be discussed Also to be
SIt was also announced that ilsing inspected will be the basic econirmic
scholarships ale being offered to af- and political stilctiue of the totali-
I filiates' employees and thell (hildien ta ian capitalism of Gelmiany's Thld
foi the first time Reich
Applications submitted at this tlle Two groups will be enollced fo]
would be foa consider action fot the the senilnal One gl oup wvil meet
school year beginning Septemhel, Monday and Wednesday evenings be-
1964. Employees, children if eil- ginning Nov 18, and the second gloi.p
ployees and annuitants, and children will convene on Ttlesdy and Thlirs-
of employees who died while .n the day evenings beginning Nov 19 Ses-
seivice of Lago i, affiliated compa- siuns will be held in the Administia-
n:-s of Standard Oil Comnpan I New tion Building
Jersey are eligible foi scholarships, Entollment foimns ate avadlible .it
'awarded by the Teagle Foundation the Industrial Relations Depai Lment
Applicants must make lnd, endent Ti aning Division They also tni.y be
Application to and have acceptance found on the bulletin boaidil at the
froin Cnmnell Univesilty Massathu- Genetal Offnie Building. Administi a-
;setti Institute of Technology, Hal- tion Building, Maline Office, Stoe-
, vard G:adlate School of Busiln ss Ad- house and Zone 1 Office
Snmistiation. Rice UnivelsitVy ,I Til- Priol to his present d.signnment a'
lane University fto final co:i:.del a- i The Pennsvivanta State Uni ci-sitty.
tion I) Robinson seliv d as economist foi

Employees applying for scholat-
ships for themselves must have at
least two years of ompanv set vice
Employees \vhose sons oi daightels
apply must have at least thi .e veais
(f ctin: any service Additilnal in-
foimation imay be obtained firom Mi
Dittle. Indust-..l Relation., !ena i t-
nient Ti lning Divi'sion

the Outdoor Reie action Resanllices
Review Commission. Econonu Pio-
jections Study of the National Plan-
ning Associatiton, and (IConftlence on
Economic Pi igiess
The thil ty-five-yeal old economist
also served as an assistant plofessol
of economics at Geolge Washington
U"nivl ilvty

Q -- Why was the OCAW voted out at Baytown?
A The main reasons for the independent union vic-
tory at Baytown last June were reported as :
Failure of OCAW to live up to glowing promises it made
in 1959 concerning wage increases, job security and other
matters.
OCAW's continued and growing identification with long
and costly strikes, such as the 354-day strike at Shell's
Houston Refinery.
Harassment of the Baytown local OCAW officials by
international union representatives. Their interference in
local union affairs antagonized union members, including
the Baytown union president, who resigned in protest.
In its campaign literature, the Baytown independent
union said this, and, by implication, why the workers no
longer wanted OCAW to represent them :
"This union is dedicated to the proposition that a strike
is not a good weapon, or at this time even an effective
weapon in the oil refining industry."
"Our negotiations will be done by our fellow employees
and not by an international representative responsible to
Denver ( the headquarters of the OCAW)."
Also, the Baytown workers apparently couldn't see
paying an increase in dues from $2 to $5 a month because
of an expected increased assessment by the international
union.
Q -- Why did employees at Baytown vote for OCAW
in 1959?
A -The independent union lost out in 1959 because:
Baytown workers were seeking additional job security,
and thought an affiliated union might be able to achieve
more restrictions on how the refinery was manned
Officials of the Baytown independent union at that time
were reported to be paying too little attention to the
problems of the members and too much attention to in-
ternal union politics and perquisites.
Baytown management failed to communicate adequately
either to the union or to employees about manpower re-
duction Management "lost touch" and employees felt
management really didn't care what kind of union repre-
sented the employees.
Q - What is Jersey's experience in dealing w'th af-
filiated unions elsewhere?
A Since Jersey affiliates operate world-wide, their
experience involves dealing with all kinds of unions -
independent, national and international. While Jersey's
preference for dealing with independent unions is well
known, affiliates throughout the world deal successfully
with other kinds of unions if they are chosen by employees
to represent them. As with any other employer with a
successful record of employee relations, the Jersey record
is based primarily on a policy of paying good wages and
benefits, and a practice of seeking solution to mutual
problems through mutual consultation.
The experience of Jersey affiliates is that, while any
union can keep the company on its toes concerning main-
tenance of good wages and benefits, the practice of ar-
riving at mutual solutions through mutual consultation
is least likely to work where :
The union is influenced in its relations with the com-
pany by considerations of politics.
The union bargains on an industry-wide or nation-wide
basis and is not free to arrive at agreements based solely
on consideration of the workers it represents.
The union is represented at the bargaining table by
outsiders who don't know local problems and people.
Q - Is it correct that refineries where they have in-
dependent unions generally pay better wage rates than
those with affiliated unions?
A This has been true in the past. It applies equally
to other industries. There is a simple explanation for it.
Where a company pays high wage rates and provides
comparable benefits and working conditions, there is little
reason for a union to seek affiliation and the "power
plays" that are a part of affiliation. Furthermore, the in-
ternational unions generally prefer standardization of
wages and wage increases rather than separately nego-
tiated wage settlements in different plants.
John L. Lewis, president of the United Mine Workers,
was invited to address the membership of the Bayway
independent union to explain the possible advantages of
affiliation to them. He reportedly admitted at this meet-
ing that the international union could not offer much
incentive for the Bayway workers to join UMW in terms
of getting better wages and benefits. The main advantage
in getting the Bayway union to affiliate with UMW would
be that Bayway rates and benefits could be used as stand-
ard for other UMW local unions to shoot for.

Government
Q What is the government's attitude on affiliation?
A Lago has made no inquiry to the government, nor
has any viewpoint been offered by the government to
Lago. Past experience indicates that the government is
officially neutral on the subject and would neither en-
courage nor discourage a union in deciding on affiliation.

Questions Asked By Employees
These are questions about affiliation asked by em-
ployees during the recent management member meet-
ings conducted by General Manager F. C. Donovan and
Industrial Relations Manager J. V. Friel. The material
on these pages is presented objectively and is intended
solely to provide background information. It neither
criticizes nor applauds; it relates facts, understandings
and past experiences.

The government has an obvious interest in the mainten-
ance of labor peace, and would undoubtedly view serious-
ly any development which threatened its effort to attract
new industries.

Job Security
Q Does the company have a manpower objective
which can be announced?
A It is not possible for Lago or any other refinery
to predict its manpower requirements on a long-range
basis. It is impossible to accurately predict possible
changes in the volume and kinds of products Lago will be
called upon to supply; changes in the kind and number
of processing units needed to supply them; competition
from refiners which may introduce new needs for invest-
ment or efficiency; unforeseen technological changes.
For these reasons, reasonably firm predictions of man-
power requirements can only be made for one to two
years in advance. In the management information sessions
last May, President W. A. Murray stated that Lago's
manpower requirements were expected to decline about
7% in 1963 and probably by the same approximate
amount in 1964. Lago started the year with 3667 em-
ployees actively on the payroll. Management's prediction
earlier this year was that we will have approximately
3400 employees at the end of 1963 and approximately
3150 at the end of 1964. Aug. 1, 1963, there were 3459
employees actively on the payroll.
(These figures are based on total separations from the
company for all reasons retirement, resignation, dis-
charge, voluntary and involuntary lay-off. It is impossi-
ble for an individual employee to relate manpower pre-
dictions to his own situation since a surplus of employees
does not exist in many work units.)
Q What are the prospects for new industry coming
to Aruba?
A Although numerous inquiries have reportedly
been made by potential investors, it is not known whether
any sizable new industries are presently planning to com-
mence operations here.
In contacts with such individuals, though, their interest
in investing and providing jobs in Aruba has in all cases
been based on three assumptions reasonable taxes, a
stable government, and peaceful labor relations. If any
of these three factors were not reasonably certain, it
would make the job of attracting new industries here a
lot harder.
Q -- Have affiliated unions been able to achieve a
greater degree of job security?
A - No refinery is known where an affiliated union
has been able to "save" or "make" more jobs than were
needed to operate the refinery. Experience among Jer-
sey's domestic refineries is that manpower reductions
have been necessary and have taken place regardless of
the kind of union they had. For instance :
The Baton Rouge, Louisiana, refinery has an indepen-
dent union. A reduction of 400 jobs was announced in
January.
The Baytown, Texas, refinery eliminated about 500
jobs early this year, when the OCAW still represented
Baytown workers.
The Shell refinery at Pasadena, Texas, has an OCAW
union. 433 jobs have been eliminated during the past year.
Gulf Oil's refinery at Toledo, Ohio, announced a man-
power reduction of 221, early this year. In four years
they have reduced manpower about 40';. The Gulf work-
ers are represented by OCAW.
The Shell refinery at Norco, Louisiana, laid off 242
employees following settlement of a strike by the OCAW
union earlier this year.
It seems pretty obvious that the kind of union that re-
presents a refinery's workers has little or nothing to do
with determining how a refinery is manned. Any refinery
that does not man itself competitively would probably
soon reach the point where there would be no union ---
because there would be no refinery.
Q Is it true people can't be laid off under the Ven-
ezuelan contract?
A In the contract negotiated this year, there is a
provision that the oil companies will not lay off more
than 2% for each year the contract continues. Thus, if a
company had 5000 employees, it could not lay off more
than 100 a year; but this would not limit further reduc-
tion through retirement, resignation, etc.
Several factors should be recognized, though, in con-
sidering whether such a provision could be applied in

Aruba. (a) There is no requirement for any Venezuelan
oil company to retain the same number of men (less 2%)
in any specific operation area. For instance, Creole is
substantially reducing its manpower in Eastern Venezue-
la. They will be given the choice of moving to another
part of Venezuela where Creole operations are not being
reduced, or of accepting a termination settlement. Amuay
refinery is free to reduce manpower as much as it needs
to remain competitive. Again, surplus manpower can be
offered jobs in other parts of Venezuela.
Lago obviously does not have any location except the
Aruba refinery in which to employ people.
(b) The Venezuelan oil industry has many branches
-producing, exploration, refining, marine, marketing. A
reduced need for refinery manpower in Venezuela may be
offset by new producing or exploration activities requir-
ing additional manpower. Except for a small amount of
marketing, Lago has only one business oil refining.
(c) Venezuela has the oil. Losses in one branch of the
business can potentially be made up by profits in other
branches. Lago must make a reasonable return on the
investment in its only operation oil refining if it is
to survive in the competitive refining industry.

Affiliation Here
Q Would Lago's costs go up if the IOWUA affiliat-
ed?
A They would if affiliation caused labor difficulties
which affected our production or required uneconomic
concessions. Insofar as normal collective bargaining is con-
cerned, it is doubtful that affiliation would make any dif-
ference. Lago's rule of thumb has always been to arrive
at settlements with the IOWUA and its predecessors
which would be at least as generous as those we would
be willing to make with any other kind of union. The re-
sults show up in the current CWA which is without a su-
perior in the Netherlands Antilles. Costs per employee
practically always go up as the result of bargaining a
new CWA. Management's problem is to keep overall costs
in line with our ability to remain competitive.
If affiliation resulted in labor difficulties that stopped
our production, Lago would not be the only loser. The
loss to employees, the Aruba community and the govern-
ment would be approximately Fls. 130,000 a day.
Q What would Lago workers lose if they affiliate?
A In day-to-day terms of the CWA, it is doubtful
that they would lose anything. Lago would expect to bar-
gain in as good faith with an affiliated union as with an
independent union. Any worthwhile union wants and tries
to get "more" for its members. Lago workers, it is felt,
will insist on a good CWA, whoever represents them.
From the long-range standpoint, though, we think Lago
workers stand to lose their independence of action if af-
filiation takes place. Situations are almost certain to oc-
cur in which "union solidarity" is expected of an interna-
tionally affiliated union. International union representa-
tives regularly reply to Lago's concern on this point by
stating that "the international union movement may in
no case put aside the autonomy of the local trade union."
They also point out, as did a recent international union
visitor, that non-affiliated unions sometimes join interna-
tional actions out of solidarity considerations.
This is Lago's real concern. The invitation to take part
in international solidarity actions is always there, and
that the strike is the main weapon of the international
unions. Lago's management must be free to decide the
refinery's operation solely in terms of the best course of
action for Lago, its employees and the Aruba community.
Lago believes the union representing its workers must be
free to operate and decide for itself on the same basis.
Lago workers, it is felt, will lose this freedom of decision
if their union affiliates with an international.
Q - Won't the affiliation issue arise later on even if
it doesn't succeed now?
A Probably. The strategy of the international unions
is based on the normal political tactic of selecting a popu-
lar issue, blaming the independent union for whatever is
"wrong" and promising to make everything "right" if
they are elected. Lago's vulnerability to the affiliation
issue is no different than that of other refineries which
have independent unions. For example, at Humble's Bay-
way Refinery, the OCAW has been involved in three elec-
tions versus the independent union, in 1957, 1960 and
1963. Although the independent union has won each time,
it can be assumed the OCAW will try again some time in
the future.
Q Are the employees known who are the "hard core"
working for affiliation?
A A number of employees have openly identified
themselves as leaders in the effort to achieve IOWUA
affiliation with an international union. The company has
made no attempt -and plans none to single out em-
ployees who support affiliation as individuals. Strong as
Lago's preference is for independent unionism, all em-
ployees are protected in the right to their individual view-
points by the company's stated labor policy, that is, "No
discrimination because of membership or non-membership
in any society, church, fraternity or labor organization."

ARUBA ESSO NEWS

October 3, 1963

Q Are outside organizers involved in the current af-
filiation issue?
A Since the international unions have most to gain
if the IOWUA affiliates with them, it can be assumed
they are actively assisting in the current drive. Interna-
tional union representatives visit Aruba and have estab-
lished contacts here. Lago does not know of any organizer
who is being paid specifically for the job of organizing
an affiliated union at Lago as was done in 1955, when the
AFL-CIO assigned one of its organizers iDavid Stern-
back) to Aruba for that purpose,
Q Is the affiliation issue real or is it just a threat
to achieve some other objective ?
A So far as Lago employees are concerned, this
probably won't be known unless and until a referendum on
affiliation takes place. But as far as the international
unions are concerned, there is no question the affiliation
issue is "for real." For example, if there were some simple
solution to the question of job security, this would elimin-
ate job security as an issue related to affiliation.
The international union groups would simply seek some
other popular issue -or even create one to keep the
question of affiliation alive. Particularly since the total
number of workers enrolled in the internationally affilia-
ted unions has tended to level off land even decline in
the U.S.), the international unions themselves are out
"looking for business." This has resulted in fierce union
jurisdictional struggles in the U.S., and CLASC and ORIT
are in active competition against each other in Latin Ame-
rica to sign up new members.
Q Would an affiliated union prevent contracting out
work?
A Lago doesn't know of any unions, affiliated or
otherwise, which have been successful in preventing the
use of contractors in oil refineries. There are some basic
reasons for this. First there is some work that obviously
can only be done by contractors because of their special-
ized experience and equipment. The major part of Lago's
contract work is in this category, such as construction and
modernization jobs. Some service or maintenance work is
also contracted out because of its non-continuous or non-
plannable nature, or simply because the work does not in-
volve skills and training necessary to operate a refinery.
Partly because of Aruba's relatively isolated location,
however, Lago contracts out considerably less work of this
kind than major refineries elsewhere, where it is becoming
increasingly common to contract such jobs as unit turn-
arounds.

Affiliation General
Q How can affiliation be bad if all Jersey companies
are "affiliates" ?
A In looking at affiliation, whether it is a company
or a union, consider two things the purpose of the af-
filiation and what results from it.
The purpose of Lago's affiliation with Standard Oil
Company (N.J.) is pretty obvious. Without the parent
company, there probably wouldn't be a Lago. It is the
parent company that supplied the initial capital to build
Lago, that provided additional capital when needed (Lago
did not start paying dividends to its owners until 1946);
that makes operating knowhow and research available to
us, and that sets standards by which each affiliate oper-
ates. The purpose of Lago affiliation with Jersey provides
a satisfactory means for the parent company to invest in
oil refining in Aruba. Through this affiliation everybody
benefits Lago, Aruba and Lago employees. If Lago ever
became an unsatisfactory investment, certainly the parent
company would have no incentive to continue operating
the refinery. Lago employees have only to consider their
pay, benefits and working conditions to recognize the
benefits of affiliation with a company that encourages this
kind of sharing with its employees.
The purpose of the international unions in seeking to
affiliate the IOWUA with them is to become bigger and
more powerful in order to accomplish their international
objective. Unfortunately, while this objective is good, that
is, to improve the lot of workers everywhere, the means
by which they seek to achieve it tend to be those of con-
flict rather than cooperation with employers. It seems
clear that conflict would have damaging results for Lago,
for Aruba and for Lago employees.
Affiliation is a good thing if its purpose and its results
are good. Affiliation is not a good thing if its purpose
and its results would not be good for all concerned. The
benefits derived from Lago's affiliation with Jersey are
obvious. There has been no evidence that international
union affiliation could be beneficial to Lago or Aruba.
This kind of affiliation, Lago believes, could have dam-
aging results.
Q Why have independent unions elsewhere decided
to affiliate?
A Actually independent unions don't affiliate with
an international organization very often. Independent
unions find they can arrive at agreements as good or bet-
ter than those negotiated by internationally affiliated
unions, and with far fewer strikes in the process. So most
independent unions avoid the potential conflict which af-
filiation can introduce. More frequently, an international-
ly affiliated union "takes over" from an independent or-
ganization, as the OCAW "took over" at Baytown in 1959.

Where either kind of union affiliation takes place, it is
likely to be for one or more of the following reasons:
(a) Existence of a problem which the independent un-
ion leaders have been unable to solve, and which the
members hope may be solved through international affi-
liation. (In this connection, a recent article in the perio-
dical "Labor Trends" is of interest )
"All across the country union members are deeply
bothered by problems, and by the inability of their union
leaders to do much to correct them. This is one cause
for the mistrust of union members for officers a mis-
trust that carries all the way from local to international
levels.
"The fruits of this attitude are ripening on all sides in
all unions. Elections of local officers have largely been
completed for this year. The general outcome has been a
dizzying wave of defeats for incumbents. Newcomers have
flocked into office. This makes bargaining problems. The
newcomers have promised movement, action, results.
"One might well expect, therefore, a darkening labor
landscape ahead. One might expect really intensified de-
mands for worker and job security, pushed by agents in-
tent on making a showing in their first bargaining.")
Ib) Access to financial and technical resources of the
international unions, which are admittedly far greater
than those of independent unions. In the U.S., the Team-
ster union uses this as one of its major organizing ap-
peals to independent union groups -the availability of
the Teamster's "war chest" to finance strikes of its af-
filiated local unions.
(c) The interest of union leadership in the opportuni-
ty international affiliation provides for travel, for parti-
cipation in meetings with other union leaders, and for in-
dividual advancement and recognition in the international
union movement.
(d) The failure of management through voluntary
cooperation with the independent union to provide the
status the union desires in dealing with affairs of mutual
concern. A union and its leadership which feels it is deal-
ing with an autocratic, non-ccc. rative management is
likely to seek international affiliation so management "co-
operation" can be forced through the use of union power.
te) Dissatisfaction with the independent union leader-
ship, when the leadership is not active enough in the
members' interest or appears to be mainly concerned with
its own perquisites and position. Where this occurs, an
opposition leadership is likely to develop which promises
change, and one of the most convenient changes is from
independence to international affiliation. The international
unions are always on the alert for this kind of situation.
Q Can a union break away from affiliation if it
wants to?
A Apparently it can, although it isn't very easy.
More frequently workers simply decide to form a new in-
dependent union to represent them, as was done at Bay-
town this year. International unions try to avoid this at
all costs because of the damage to their prestige as well
as loss of membership. In some cases in the United States,
particularly in the coal and steel industries, refusal to
affiliate or efforts to break away from affiliation have
resulted in physical violence to the persons, families and
property of independent-minded union members.
Q- Where do the international unions get their
money?
A From dues and assessments on the members of
the local unions. Typically, at a recent OCAW convention
the delegates decided to increase the monthly payment to
the international from $2 to $2.55 a member. OCAW in
turn pays a per capital membership fee to the AFL-CIO.
A survey earlier this year among nine refineries in the
Houston, Texas, area showed that the average OCAW
dues are $7.50 per month, apart from special assessments
for strike funds and other purposes.
Such groups as the ICFTU are supported by contribu-
tions from the big national unions. An idea of the scope
of these contributions is indicated by a recent news re-
port that the AFL-CIO has cut its regular contribution
to the ICFTU by 40';, from $1.275,000 to $765,000 a year.

Recognition
Q Will the CWA remain in effect if the IOWUA
affiliates ?
A Yes. Even if the IOWUA were dissolved, the
company would be obligated to observe the terms of the
present CWA until it expires. Article XI of the National
Ordinance of May 12, 1958, Regulating CWA's provides :
"Dissolution of an association which has concluded a
CWA shall have no influence on the rights and obligations
resulting from that agreement."
Q Will Lago continue to recognize the IOWUA as
sole bargaining agent for our workers if it affiliates?
A -Under Articles I of the CWA, the company is
obligated to recognize the IOWUA as sole bargaining a-
gent for our covered employees for the duration of the
agreement. Continued recognition as sole bargaining agent
after the CWA expires would depend on whether the
IOWUA continued to represent the choice of a majority
of covered employees for representation purposes.
Q Would company recognition of IOWUA affiliation
depend on the number of employees who vote for affilia-
tion ?

A -A decision on union affiliation would presumably
be made by the IOWUA membership in accordance with
whatever procedure is established in the union's constitu-
tion and bylaws. The number of employees voting under
such a procedure would have no bearing on the company's
obligation under the CWA to recognize the IOWUA as
sole bargaining agent for our covered employees for the
duration of the agreement. It is a reasonable assumption,
however, that the company's continued willingness to re-
cognize the IOWUA should it affiliate would depend on
whether a majority of our covered employees desired to
be represented by such an affiliated union.

Referendum
Q What are the voting requirements for a referen-
dum on affiliation?
A The draft bylaws of the IOWUA originally pro-
vided that affiliation could only take place as the result
of an affirmative vote of two thirds of the entire mem-
bership. It is understood that the bylaws have been
amended to provide that the question of affiliation can
be decided by a simple majority of union members voting
in a referendum called for that purpose.

Strikes
Q Could the refinery be run if there were a strike?
A This would obviously depend on all kinds of cir-
cumstances, so the answer is not known.
Jack Knight, president of OCAW, recently proposed that
his union and the companies with which it deals try to
find some other way of settling disputes than by striking.
This was undoubtedly the result of OCAW's 1962 exper-
ience, which proved that strikes are not only costly to
union members, but generally do not stop operations. The
record of OCAW refinery strikes in 1962:
One Shell refinery was struck for 354 days, involving
2200 employees. The refinery operated at 100'; capacity
during the strike.
Five Mobil refineries were struck for periods ranging
from 15 days to 205 days. The smallest refinery employed
160 people, the largest employed 470. Mobil reports that
operations continued at "practically full" capacity in four
of the refineries.
One Cities Service refinery employing 200 people was
struck for two days and chut down
One Gulf refinery was struck for 72 days, involving
3800 employees. The refinery operated at 60'; capacity.
All the strikes were on the issue of job security. The
OCAW admits that none of them solved the problem

Relations With IOWUA

Q To what extent does the company finance the
IOWUA ?
A The company does not contribute to or finance
the IOWUA either directly or indirectly. nor has it ever
done so in the past, except by providing time off with pay
for Board members to conduct union business.
In August, 1931, as a gesture of cooperation anl good-
will, and in recognition of the limited finances of the
IOWUA as a new organization, the company offered the
IOWUA Board members time off with pay on the follow-
ing basis :
"Although the Company considers that pay for time
off the job on Union business other than dealings with
Management should be the responsibility of the Union
and not of the Company, it is recognized that at the pre-
sent time the finances of the IOWUA probably do not
permit this.
"Therefore, for a period of one year commencing Au-
gust 3, 1961, the Company is willing to grant time off the
job with full pay to the president and general secretary
of the IOWUA.
"The Company considers that in this way it can make
effective and reasonable contribution to the initial ability
of the IOWUA to organize and function efficiently.
"Other Board members will be relieved of their regular
job duties with full pay each Monday, if they are sche-
duled to work on that day, for purposes of dealing with
Management and such other business as the IOWUA may
wish to transact on that day."
This offer was accepted by the IOWUA Board at that
time. In December, 1961, management agreed to provide
the same time off privileges for the duration of the CWA
executed at that time. (The Board members elected in the
IOWUA election on Aug 15, 1963, receive time off with
pay on exactly the same basis, and are entitled to do so
for the duration of the CWA.
Q Did Lago pay Ritfeld's expenses for his U.S. trip?
A Not a penny. Lago's only involvement and the
only request Ritfeld made to Lago was to grant him
the 10 weeks' vacation he had accrued as of May, 1933.
as well as a 1 weeks' unpaid leave of absence as provided
in Article XVI Section 9 of the CWA Ritfeld's action
in electing to take vacation to cover his absence made it
possible for another IOWUA Board member to be granted
full time off the job with pay as acting president.
It is understood that any expenses for which Ritfeld
was reimbursed were paid by an organization called the
American Institute for Free Labor Development

Of Esso Chemical Company
J. F. Wright has been elected di-
rector and vice president, Europe, of
Esso Chemical Company, Inc, recent-
ly formed international chemical af-
filiate of Standard Oil Company (New
Jersey) Mr. Wright and his staff
will establish headquarters in Brus-
sels later this year.

Award, Company's Highest
A $15,000 check presented recently
to a Bayway (New Jersey) Refinery
employee was the greatest Coin-
Your-Idea award in the history of
Humble Oil and Refining Company.
The employee, who is a laboratory
technician, suggested a change in
manufacturing procedure which in-
volved the elimination of an expen-
sive solvent which previously had
been added and which required a
special production step to recover.
The CYI has resulted in a cheaper
process for making new truck and
railroad engine lubricating oils. The
idea is also covered by a United
States patent.
The highest initial award paid by
Lago's Coin-Your-Idea program is
Fls. 5000 which C. F. Bond of the
Mechanical Department received in
1953. The initial award limit in La-
go's suggestion plan is Fls. 25,000.
There were two large awards last
year. A Fls. 1890 award, the second
highest in the company's history, was
earned by Peter Storey of the Mech-
anical Department in October. Ear-
lier last year, in March, D. W. Mar-
ques of Process-Light Oils Finishing
earned Fls. 1825 for an accepted
suggestion.
Both Mr. Storey and Mr. Marques
earned additional money in Capital
Awards. Top Capital Award for 1962
was Fls. 1795 which was awarded to
Mr. Marques. Mr. Storey took down
the second highest 1962 Capital
Award of Fls. 1360.
Mechanical Department
Machinist

Of Barbados Study by Esso Research
Dr. James F. Black of Esso Research and Engineering Co. told an
international meteorological meeting about a technique for making
rain by coating coastal areas with thin layers of asphalt. The asphalt
boosts the soil temperature and the soil, in turn, heats the air above
the coating. The hot air rises, bringing in moist air from the sea and
lifting it into the sky to be condensed
into clouds and raim concept of heating land surfaces to
Studies so far indicate, he repolt- produce la:n probably was centuries.
ed, that in various regions such as old "Ancient Babylonians reportedly
the Mediterranean coastline or tro- burned their fields after haivesl
plcal islands, rainfall might be signi- time to provide a blackened area
ficantly increased at a cost of only which would produce extra rainfall
a few cents per thousand gallons of for the subsequent season." he ob-
water. served. The problem has been, how-
No actual tests have been con- ever, to develop durable, economical
ducted as yet but a meteorologicali coatings
and geographical search is under Asphalt appeals to be the answer .
way for a remote area where an he concluded, because it developed a
asphalt coating large enough --- sev- surface tempe atie e as mdech as 2
eral square miles can be applied degrees higher than other durable
to provide a sizable demonstration materials such as brik or concrete
Dr. Black also announced that Es- and can be applied economically But
so Research would participate with an important question was, "How
Florida State University and other much rainfall can an asphalt coating
organizations in a study of atmo- produce-" Dr Black, n collabora-
spheric conditions in the Barbados, tion with Dr Barry L. Tarmy of Esso
British West Indies, area. No asphalt Research, answered this by elat in
coatings will be put down there. In- the rainfall which they would expect
stead, the objective is to obtain new to the rainfall obtained over moun-
data on how islands, which act as tains Along the Mediterianean coast
heat sources for the surrounding of North Africa, for example, moun-
seas, influence rainfall. teams only 2,000 feet high average
Portable Mast 20 to 30 inches of rain yearly, con-
paied with only three inches on
The company is helping defray the nearby flat coastal zones.
cost of stationing an oceanographic By these calculations, it was es-
ship upwind of Barbados The vessel, timated that 2 to 3 square acres o:
owned by the Woods Hole (Massa- viable land could be produced in a
rhusettsi Oceanographic Institution, desert region for ea(h square act e
w,ll be used mainly for the launching of asphalt coating
of instrumented balloons to record On the economics side, it was fig-
scientific information about the lred that the cost of the asphalt
clouds and breezes as they approach and application foi a covering lasting
the island, five years could be as low as about
On the island itself, the scientists I three cents for every 1,000 gallons of
plan to obtain data on ground level water. Thi would be considerably
conditions, principally with the use lower than that for desalting set.
of a 100-foot instrumented mast. The water, pipelining ftesh water f om
portable mast is being designed and rivers or constructing watersheds
tested now at the Esso Reseatch r s or c ti w
tested now at the Esso Research, The final estimates of costs and
Center. An airplane will also be used details of the technique will depend,
to collect weather data over Bar- Dr Black indicated, upon the results
hados of the Barbados studies and even-
Dr Black's report was presented tual large-scale demonstrations
before the Third Technical Confer-
ence on Hurricane and Tropical Met- Schedule Of Paydays
eorology sponsored by the American
Meteorological Society, in coopera- Semi-Mont:ily Payroll
tion with the Mexican Geophysical Sept 16 30 Tuesdav Oct 8
Union and American Geophysical Monthly Payroll
Union Dr. Black noted that the basic Sept 1 3o Wednesday, Oct 9